DoorDash Dasher Taxes in San Diego, California - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for DoorDash Dashers in San Diego, California

Navigating the vibrant streets of San Diego as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from deliveries are considered self-employment income, requiring careful attention during tax season.

The IRS requires all DoorDash Dashers to report their income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Furthermore, because you are self-employed, you are responsible for paying self-employment taxes, which cover both Social Security and Medicare. This is in addition to your regular income tax liability.

How California Handles Gig Worker Taxes

As a resident of California, a state income tax return is required even if no federal tax is owed. California has a graduated income tax system, meaning the tax rate increases as your income increases. DoorDash income is considered taxable income and must be reported to the California Franchise Tax Board (FTB). The primary form for self-employed individuals to report income and calculate tax liability is Form 540. California also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in taxes for the year. This is crucial to avoid penalties. Working in San Diego presents unique considerations; parking can be challenging and expensive in areas like the Gaslamp Quarter or near the beaches, and these parking expenses may be deductible as business expenses (see section below). Demand fluctuates significantly based on time of day and events – understanding these patterns can help maximize earnings, but also impacts the amount of income subject to tax. California’s income tax rates are among the highest in the nation, so accurate record-keeping and maximizing deductions are particularly important. The FTB offers resources specifically for independent contractors, and it's recommended to consult their website for the most up-to-date information and forms: California Franchise Tax Board. Remember to factor in potential local taxes or fees related to operating a business within the city of San Diego.

Top Tax Deductions for San Diego, California Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents/mile. Given California’s consistently high gas prices, especially in San Diego County, carefully consider whether the standard mileage rate or the actual expenses method will yield a larger deduction.
• Tolls & Parking: San Diego doesn’t have extensive toll roads, but parking fees incurred while actively delivering can be deducted. Keep detailed records of parking receipts, especially in popular areas like Balboa Park or downtown.
• Phone & Data Plan: The percentage of your phone and data plan used for DoorDash deliveries is deductible. If you use your phone 70% for DoorDash, you can deduct 70% of the bill.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated food bags, and dash cams are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

This 15.3% tax covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as a DoorDash Dasher, you are responsible for paying both the employer and employee portions. Platforms like DoorDash do not withhold these taxes from your earnings, so it’s crucial to plan for this liability throughout the year, potentially through quarterly estimated tax payments.